Shares of Chinese video streaming platform iQiyi closed around 20% up on Tuesday after the firm’s CEO Gong Yu talked up the financial prospects of its subscription model in China’s developing copyright protection environment, reports Caixin. The Nasdaq-listed firm closed 21.5% higher than at the start of the day at $5.03 a share.
Administrative costs are also expected to drop in the first quarter after widespread layoffs in December. In the three months through December, iQiyi’s quarterly losses swelled to RMB 1.8 billion ($278.7 million) from RMB 1.5 billion in the comparable previous period.
But while total revenue for the quarter dropped by RMB 100 million to RMB 7.4 billion, revenue for the full year increased 3% to RMB 30.6 billion, according to the firm.